For Beaver Stadium, Recreation Building and other facilities where Intercollegiate Athletics is responsible for managing the sale of food and beverages, sales activities are monitored by Intercollegiate Athletics' Stand Supervisors and the Concessions Manager. The Stand Supervisors report to the Coordinator of Administrative and Business Services (hereafter referred to as Coordinator). The Coordinator oversees the financial activities of the concessions and the Concessions Manager is responsible for the operations, including inventory, of the concessions.
Stand Supervisors are representatives of Intercollegiate Athletics and are concerned with inventory verification, equipment function, stand cleanliness, and operational efficiency. The Stand Supervisor is not responsible for cash accountability.
The actual selling at concession areas is done by a variety of fraternal organizations, service organizations, church groups, University student groups, and community organizations. The group members are considered to be independent contractors and not employees of the University. Each selling group appoints one of their members as a Stand Manager.
Stand Managers are responsible for the overall supervision and representation of their group. The Stand Manager ensures that the stand is properly staffed, the workers perform their jobs satisfactorily, the stand maintains adequate amounts of products, and that the entire stand operation runs smoothly and effectively.
Each group is paid a percentage of its gross inventory sales (less Pennsylvania Sales Tax) which may be divided among the members and/or retained by the group as a whole, depending on the wishes of the group. Individuals are also utilized by the Selling Groups to sell by traversing the stands.
Intercollegiate Athletics forms and procedures (in conjunction with this procedure), are utilized for all Intercollegiate Athletics facilities events. All such completed forms must be retained by Intercollegiate Athletics for the period stated in the "Record Retention" section of this procedure.
Intercollegiate Athletics has rights to sell food and beverages at events in Intercollegiate Athletics facilities. However, if Intercollegiate Athletics waive the right for a certain event or activity, other organizations such as (but not limited to) the Department of Housing and Food Services and student groups may be permitted to sell food and beverages. Approval or rejection of an organizations request to act as a vendor in place of Intercollegiate Athletics, and the negotiation of sales commission terms (if any), is the responsibility of the Associate Athletic Director. (Refer to Policy AD26)
Revenue derived from food and beverage sales at all Intercollegiate Athletics facilities are credited to Budget 08-066-81 (Concessions), Fund 10050 (Sales Income), Object Code 0040.
Inventory sold at Intercollegiate Athletics-managed sales is acquired by, and is the property of, Intercollegiate Athletics. Ownership is never transferred to a selling group.
Unless otherwise agreed to in writing in advance by Intercollegiate Athletics and the selling group, only Intercollegiate Athletics inventory may be sold at an Intercollegiate Athletics event.
Standard University purchasing policies and procedures are followed by Intercollegiate Athletics in obtaining the necessary inventory. All vendor contracts with Intercollegiate Athletics are extended on a yearly basis unless otherwise specified (Refer to Policy FN11 and FNG02). Vendors must meet the specifications of the Intercollegiate Athletics Concessions Manager regarding quantity, quality, and service.
The bulk of the inventory for large events such as football games is maintained in warehouses under the control of Intercollegiate Athletics. The Physical Plant Customer Service representative, the Physical Plant Service desk, the appropriate Facility Manager, the Coordinator, and the Concession Manager have access to these storage areas.
The responsibility for the proper inventory control and distribution of
the inventory to the various selling areas lies with Intercollegiate Athletics.
Appropriate forms for receiving inventory, distribution of inventory to selling units, and the return of remaining inventory to Intercollegiate Athletics stock is completed and generally-accepted accounting and inventory control practices must be observed.
Prior to the start of the athletic event, Intercollegiate Athletics determines the quantities of inventory that will be needed for the event and for each concession stand. Concessions Stands are stocked according to their size and description, and not all stands sell the same products.
All inventory is pre-stocked in each stand prior to the event by an Intercollegiate Athletics employee. Inventory is broken down into units of sale and items that are sellable and non-sellable (Exhibit "A"). Perishable items such as meat and pretzels are stocked the day of the event.
Vendors delivering perishable products the morning of the event are subjected to a beginning and ending inventory count by an Intercollegiate Athletics representative to determine the quantity of products actually purchased for that day's event (Exhibit "B").
As the trucks arrive, a total beginning inventory of every item on the truck must be recorded. After this amount is recorded and agreed upon by the vendor representative and the Intercollegiate Athletics representative, the product is distributed among the concession stands to complete their beginning inventory (Exhibit "C").
The trucks are required to remain on the premises throughout the duration of the event, and agree to credit Intercollegiate Athletics for all unopened product collected and returned at day's end.
At this time, an ending inventory is recorded by an Intercollegiate Athletics representative to indicate to both Intercollegiate Athletics and the vendor the total amount purchased for that day.
The Intercollegiate Athletics employee and the vendor must be in agreement of the amount of product purchased and credited before the trucks depart. All forthcoming invoices are expected to reflect the game day statements.
After all the inventory has been pre-stocked, the Stand Manager will receive a record of the number of units of sale that have been placed in each stand (Exhibit "D"). The Pre-Stock Inventory Form enables Intercollegiate Athletics to cross-check what was actually stocked by the department versus the Stand Manager's and the Stand Supervisor's physical count. Agreement of the amount is signified by the Stand Manager and the Stand Supervisor initialing the Form.
Before the event, the Stand Manager and the Stand Supervisor each separately count the beginning inventory in the Stand Manager's selling area. Any discrepancies between the Stand Manager's and Stand Supervisor's counts are resolved by the Concessions Manager before the start of the athletic event. No selling is permitted until these individuals are in agreement on the beginning inventory counts.
After agreeing on the counts, beginning inventory amounts are recorded onto the Athletics Concessions Inventory Report (Exhibit "E") under the "Beg. Inv." column. The Stand Manager and Stand Supervisor initial the inventory report indicating their agreement on beginning inventory. This is necessary for future use in calculating inventory sales at the end of the event. The event, date, and stand location are also filled in at this time on the Inventory Report.
Any replenishment to the beginning inventory during the event is evidenced by an Inventoriable or Other Product Transfer form (Exhibit "F"). Several Transfer forms may be accumulated during the event and totaled for a single entry onto the Athletics Concessions Inventory Report (Exhibit "E") for each stand in the "Del" column.
The Stand Manager (or his/her representative) needing inventory presents the warehouse badge provided by Intercollegiate Athletics prior to the event, which identifies the stand, for identification purposes and indicates the stand number to the Warehouse Manager. The Warehouse Manager completes the Receipt indicating product and quantity of replenished inventory, and signs the completed receipt. The Stand Manager or his/her representative signs the completed Receipt, indicating delivery. The Warehouse Manager keeps the original and one copy of the signed receipt and gives the remaining two copies to the Stand Manager and Stand Supervisor.
If any sellable inventory is transferred between stands, it is evidenced by a Transfer form (Exhibit "F") indicating quantity and product. The receipt is signed by both Stand Managers or their representatives. The original signed receipt is attached to the Athletics Concessions Inventory Report of the stand that supplies the inventory. One copy is kept by the Stand Manager supplying the inventory, and the remaining copy is kept by the Stand Manager that receives the inventory. The transferred inventory is recorded on the Athletics Concessions Inventory Report of both stands. The stand providing the inventory records the delivery in the "Out" column, and the stand receiving the inventory records it in the "Del" column.
It is the responsibility of the Coordinator to verify all Warehouse deliveries and any transferred inventory by comparing the original Inventory Transfer forms with the applicable Athletics Concessions Inventory Report.
To provide a means of resolving any unusual overages/shortages, the Coordinator compares the transferred inventory by stand location as well as by the aggregate.
The sale of items must be at the prices established by Intercollegiate Athletics. The selling of items that are not furnished by Intercollegiate Athletics, and are not listed on the Athletics Concessions Inventory Report, is prohibited (with the exception provided on page 2 under Inventory). Sales are on a "Cash Only" basis except for coupons redeemed by Intercollegiate Athletics employees (discussed next), and for University students who present a valid Penn State I.D. card with food points. The student card readers are only available at specified stand(s).
Prior to the event, the Associate Athletic Director may authorize the distribution of coupons to Intercollegiate Athletics employees (i.e., parking attendants, ushers, etc.) to purchase food and/or beverage. They are distributed as additional compensation and expire at the end of the event.
For the selling group to receive credit for any coupon sales, they must write their Stand number, the product the coupon was redeemed for, and the price on the coupon. No machine copies are to be accepted.
For football games, Intercollegiate Athletics maintains a change fund at the Bursar on a weekly basis.
Intercollegiate Athletics shall provide any and all change funds for
each concession stand or selling area. Receipt of this change fund is documented on the Athletics Concessions Cash Reconciliation Report,(Exhibit "G"). The amount is entered where indicated by "Bank." The Coordinator acknowledges furnishing the fund by signing where indicated "Verified," and the Stand Manager acknowledges receipt of the fund by signing where indicated "Stand Manager."
The Coordinator maintains the Intercollegiate Athletics Concessions Cash Reconciliation Report during the event. At the conclusion of the event, the Coordinator completes the Report and retains one copy and the original. The Stand Managers' and the Stand Supervisors' copy of the completed Reconciliation Report is returned with the group's commission check.
The selling group is responsible for the collection and delivery/“deposit” of cash receipts to the Coordinator, or his/her representative, who is located at the event.
Intercollegiate Athletics will manage the processing of the monies generated during the event.
The Stand Manager delivers the money to the Coordinator. Deposits are made periodically during the event (frequency depends on the dollar volume).
The deposits are counted "on the spot" by employees of Intercollegiate Athletics in the presence of the Stand Manager and the Coordinator. Intercollegiate Athletics employees complete and initial the Athletics Concessions Cash Deposit Receipt (Exhibit "H"). The Coordinator verifies the deposit amount by initialing the Athletics Concessions Cash Deposit Receipt, gives the Stand Manager a copy and provides a copy for the Stand Supervisor.
NOTE: If the Stand Manager chooses to leave without receiving a verified and initialed Deposit Receipt, and there is a discrepancy regarding the deposit amount, the burden of proof lies with the Stand Manager.
Each deposit is placed in its own cash bag with one copy of the Athletics Concession Cash Deposit Receipt.
The Coordinator, or his/her representative completes a commercial bank deposit slip in triplicate for all monies collected for the event and records each cash bag number and amount, as well as the total deposit amount.
The Coordinator retains the original Athletics Concessions Cash Deposit Receipt, one copy of the deposit slip, and all coupons for verification and internal reconciliation.
Both deposit slips, and all cash bags (with monies and supporting documents enclosed) are placed in four secured deposit bags, which are deposited with the bank after the event. The Coordinator and the Depository Bank each have a key to each secured deposit bag. (Refer to Procedure CR2005 - Depositing Currency, Coins, Checks, and Money Orders.)
Intercollegiate Athletics utilizes Brinks to transfer the locked deposit bags to the bank.
If a deposit can not be made due to weekends or evenings, all locked deposit bags are transferred to a locked vault at the Bursar's Office. Deposits are made by the end of the first business day following the Intercollegiate Athletics event.
Adequate transfer of accountability must be recorded (name, date, and ID number on each deposit bag). Responsibility for and transfer of the secured bags is traced through signatures on an Accountability Transfer Form, or an established courier log.
The bank counts the money and validates both deposit slips. The bank returns the Athletics Concessions Cash Deposit Receipt and one copy of the validated deposit slip to the Intercollegiate Athletics Business Office.
In the rare event there is a discrepancy between Intercollegiate Athletics' prepared deposit slip amount and the Bank's confirmed deposit amount, adjustments are noted on the returned Athletic Concessions Deposit Receipt and are absorbed by Intercollegiate Athletics budget.
A Report of Cash Receipts (ROCR) is prepared and processed. The ROCR document number is recorded on the deposit slip.
After the athletic event is over and selling is finished, both the Stand Manager and the Stand Supervisor, separately take inventory of any remaining inventory in a manner similar to that for the beginning inventory. The Stand Manager and the Stand Supervisor must reach a mutually-agreeable inventory count for all products.
The amount of remaining (ending) inventory is recorded in the "End Inv" column of the Athletics Concessions Inventory Report (Exhibit "E"), and both parties initial the report, indicating agreement on the counts.
The Stand Supervisor then completes the Athletics Concessions Inventory Report, indicating the amount eaten and any spoilage. The quantity of each product sold is derived by addition or subtraction of the various columns to beginning inventory. By extending, item by item, the units sold by the unit price, inventory sales for each item is calculated. The Inventory Sales column is added to arrive at the Total Sales for the stand for the event.
The original Inventory Report, with any attachments (i.e., Inventory Transfer forms), is delivered to the Coordinator, who retains the original and one copy. The Coordinator gives a copy to each respective Stand Manager and Stand Supervisor.
The Concessions Manager and/or his/her representative will conduct separate ending inventory counts. If it is not feasible for the Concessions Manager to conduct thorough ending inventory counts at every selling location, at least some test counts are performed at each location. These counts will be compared against the Stand Manager's and Stand Supervisor's counts to show any discrepancies. If the variance is extreme between the counts, a third count may need to be taken. The Coordinator will investigate and resolve any discrepancies between Intercollegiate Athletics ending inventory count and the ending inventory count reported on the Athletics Concessions Inventory Report.
The Coordinator must review the Athletics Concessions Inventory Report of each stand location for accuracy and reasonableness and to verify the computations of the Stand Manager and the Stand Supervisor.
Not until the Stand Manager and the Stand Supervisor have agreed
that the figures on the Inventory Report are accurate is any inventory to be moved from or into the concession stand or selling area. The signatures on the Athletics Concessions Inventory Report indicate agreement between the Stand Manager and the Stand Supervisor regarding the Beginning and Ending Inventory, any deliveries or replenishments, any transfers out, any spoilage, and amount eaten, and signifies acceptance of all quantity and dollar figures involved. No adjustment to any figure is permitted after this point.
The Coordinator records the Total dollar sales per the Athletics Concessions Inventory Report on the "Summary" portion of the Athletics Concessions Cash Reconciliation Report, (Exhibit "G"). Gross Commission is then calculated for each selling unit (stand). The Intercollegiate Athletics Business Office completes a computerized Reconciliation Report (Exhibit "I") comparing the inventory sales per the Athletics Concessions Inventory Report, to the total of the Cash and Coupon Sales per the "Deposits" portion of the Athletics Concessions Cash Reconciliation Report to calculate any overages or shortages. Group cash overage and shortages will be settled by an addition or a deduction to the groups' gross commission at the end of the event
Inventory waste may be deducted from Gross Commission. A mutual responsibility exists between the selling group and Intercollegiate Athletics to keep inventory waste down, but is normally not deducted from commission unless there is serious, significant abuse.
It is the responsibility of the Coordinator to establish "acceptable" levels of waste for each product and inform the selling groups of those levels in writing and in advance of the event. The Coordinator may then deduct excessive inventory waste from the selling group's commission.
The amount of net commission paid to the group(s) is a fixed percentage of the "Sub-Total" (Inventory sales less PA Sales Tax). The exact percentage is dependent upon the agreement in existence between the selling group(s) and Intercollegiate Athletics at the time of the event.
At the conclusion of the event, each Stand Manager and Stand Supervisor will receive a copy of the completed Athletics Concessions Cash Reconciliation Report (Exhibit "G"), which summarizes the change fund, all deposits, inventory sales, and calculation of the net commission amount. The Coordinator retains the original and remaining copy.
Not until the Coordinator reviews the Inventory Reports as well as all other reports (i.e., Inventory Transfer forms, etc.) for reasonableness, is any payment to be made from Intercollegiate Athletics/Pennsylvania State University to the Selling group.
The Coordinator completes a Special Request For Check form with an attached list of each selling group. Payments are made by University checks issued approximately two weeks after the event.
The Financial Officer or his/her delegate is responsible for monitoring the accountability of athletic event food and beverage sales within the scope of this procedure. Such monitoring shall include performing reconciliations and an audit during an event at each location per year.
The University Auditing Department shall conduct spot audits of Intercollegiate Athletics financial and inventory control activities as they relate to University events and interests.
The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for working with Internal Audit when audits are being performed in the administrative area, as well as performing an annual audit that is submitted to the Assistant Controller.
Record retention must be managed in accordance with Policy AD35 - University Archives and Records Management, and records schedules approved by the Records Management Advisory Committee, Office of General Counsel, and Office of the President. These retention requirements are the University's retention criteria, either derived or based upon federal, state, and local statute or regulations, industry standards, and business needs. Retention beyond recommended time periods require justifiable reasons and warrant review by the Records Management Officer or designee. All documents must be maintained in such a manner so as to provide ease of access for review, and to provide a suitable audit trail for all transactions.
- Documents subject to a Legal Hold (see AD35, Legal Hold). A legal hold will remain in effect until it is released in writing by the Office of General Counsel.
Documents under audit or review, either internally or externally. The retention period extends until released by the Corporate Controller's Office. The Financial Officer will be notified regarding any accounts which are under audit; the Financial Officer will be responsible for contacting the department.
Additional questions may be directed to the University Archivist or the Records Management Officer.
For questions, additional detail, or to request changes to this procedure, please contact the Financial Officer - Intercollegiate Athletics.
Date Approved: 03/28/95
Most recent changes:
Revision History (and effective dates:)
- Rev. 4 - Dated 10/24/94
- Rev. 3 - Dated 02/12/91
- Rev. 2 - Dated 10/28/87
- Rev. 1 - Dated 06/03/83
- Original - Unknown